Rates raised, fuel surcharge lowered by FedEx

FedEx Corp. has announced pricing adjustments for FedEx Express and FedEx Ground customers and a change in the fuel surcharge that will be effective Jan. 3, 2005.

FedEx Express will increase package and freight published rates by an average of 4.6% for U.S. domestic and export services while lowering its fuel surcharge by 2.0 percentage points, resulting in a net average shipping cost increase of 2.6%.

Due to the significant increase in the price of oil since FedEx Express implemented its dynamic fuel surcharge in 2001, the company is adjusting its fuel surcharge index downward to be more in line with the new environment. Currently, a 0.5% fuel surcharge is triggered when the price of a gallon of kerosene-type jet fuel hits $0.52 and rises 0.5% each time that price increases $0.04 above $0.54. Under the adjusted surcharge, the company will raise the trigger price for the surcharge to $0.66, which will reduce the surcharge levels by 2.0%.

Standard list rates for FedEx Ground and FedEx Home Delivery will increase an average of 2.9%. In addition, FedEx Ground will introduce an indexed fuel surcharge for both U.S. and international FedEx Ground shipments.

Other changes effective Jan. 3, 2005:

-- Delivery area surcharges assessed for FedEx Express shipments destined for locations in select ZIP codes will increase by 25 cents per package. The new delivery area surcharge for residential locations will be $2 per package. The new surcharge for commercial locations will be $1.25 per package.

-- Delivery area surcharges assessed for FedEx Ground shipments destined for locations in select ZIP codes will also increase by 25 cents per package. The new delivery area surcharge for residential locations will be $2 per package. The new surcharge for commercial locations will be $1.25 per package.

-- The surcharge for residential delivery will increase from $1.75 to $2 per package for FedEx Express shipments, from $1.75 to $2 per package for FedEx Ground shipments and from $1.40 to $1.50 per package for FedEx Home Delivery shipments.

-- For FedEx Ground shipments the charges for declared value over $100 will increase from $0.35 to $0.40 per $100 and the maximum declared value for a ground package will increase from $25,000 to $50,000 per package. A minimum charge of $1.20 will be implemented for packages with a declared value between $100 and $300.

-- The rates for shipments to Puerto Rico are also increasing.

-- Additional information is available at fedex.com/us/2005rates.

-- The 2005 FedEx Express list rates will be available to customers on fedex.com beginning Dec. 3, 2004. FedEx Ground list rates will be available on fedex.com beginning Dec. 15, 2004.
www.fedex.com

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